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Treasurer says property tax shake-up is the ‘right decision’ · The Front

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  Speaker 1: Today's biggest news from the Australian, I'm Christinamia. With the
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  Speaker 1: front's afternoon headlines, it's looking like the Albanese government will
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  Speaker 1: go there on negative gearing in next week's federal budget,
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  Speaker 1: and Treasurer Jim Chalmers says it's the right thing to do.
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  Speaker 1: Negative gearing happens when the costs of owning an investment
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  Speaker 1: property outweigh the income it generates. So if an owner
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  Speaker 1: receives twenty thousand dollars in rent from their tenants but
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  Speaker 1: spends twenty five thousand dollars on interest rates and maintenance costs,
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  Speaker 1: their investment property is negatively geared. The owners can deduct
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  Speaker 1: that loss from their salary in order to pay less
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  Speaker 1: income tax. Negative gearing is a hot election issue and
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  Speaker 1: Labor promised it wouldn't touch it before the twenty twenty
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  Speaker 1: five federal election, but the Treasurer says his new budget
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  Speaker 1: needs to meet the moment.
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  Speaker 2: A lot of Australians, and particularly younger Australians, are finding
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  Speaker 2: it really difficult to get into the housing market. That's
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  Speaker 2: not the fault of older Australians, it's the fault of
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  Speaker 2: successive coalition governments who didn't take housing seriously enough, and
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  Speaker 2: so what we are thinking through as we finalize this
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  Speaker 2: budget is not about and never will be about setting
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  Speaker 2: some Australians against other Australians. It's about recognizing some of
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  Speaker 2: these legitimate intergenerational concerns. So this will be an ambitious budget.
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  Speaker 2: It will take into consideration the real pressures and concerns
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  Speaker 2: that are broadly shared around the Australian community.
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  Speaker 1: It's looking like Labor will remove negative gearing from existing properties,
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  Speaker 1: with the changes to be grandfathered. That means people who
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  Speaker 1: already own investment properties won't be affected. The government is
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  Speaker 1: also reportedly planning to acts a fifty percent capital gains
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  Speaker 1: tax discount in favor of inflation indexation. The CGT discount
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  Speaker 1: allows property investors to reduce the profit they make when
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  Speaker 1: they sell up. That's the capital gain by half that
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  Speaker 1: can reduce their tax bill at the end of the
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  Speaker 1: financial year. People who already own properties will be partially
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  Speaker 1: protected from the CGT changes by grandfathering. The Australian reported
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  Speaker 1: the negative gearing changes will add less than a billion
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  Speaker 1: dollars to the budget's bottom line, while a reworking of
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  Speaker 1: the capital gains tax concession will raise less than five
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  Speaker 1: billion dollars. Opposition Treasury spokesman Tim Wilson says the changes
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  Speaker 1: amount to a broken election promise Australia and Japan will
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  Speaker 1: cooperate on energy, fuel, critical minerals, defense and cybersecurity. That's
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  Speaker 1: after Prime Minister Anthony Albanesi and his counterpart, Japanese PM
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  Speaker 1: Senai Takichi signed a handful of joint declarations on Monday.
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  Speaker 1: It's Albanesi's first face to face meeting with Takaichi on
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  Speaker 1: Australian soil.
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  Speaker 2: Our friendship has never been closer, and in these uncertain times,
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  Speaker 2: friendships matter more than ever.
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  Speaker 1: Japan's first female Prime Minister, Senai Takeiji, said Australia and
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  Speaker 1: Japan's alliances with the United States are quote indispensable. The
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  Speaker 1: first public hearings in the Royal Commission into Antisemitism and
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  Speaker 1: Social Cohesion got under way in Sydney on Monday. Commissioner
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  Speaker 1: A Virginia Bell said the inquiry will assess the impact
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  Speaker 1: of antisemitism on the daily lives of Jewish Australians and
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  Speaker 1: will examine what she called a sharp spike in antisemitism
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  Speaker 1: in the lead up to the Bondai massacre on December fourteenth.
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  Speaker 1: Check out those stories live right now at the Australian
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  Speaker 1: dot com dot a U and come back to the
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  Speaker 1: front first thing in the morning for a close look
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  Speaker 1: at the lived experiences of antisemitism shared by Jewish Australians
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  Speaker 1: on the first day of public hearings in the Antisemitism
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  Speaker 1: Royal Commission. That's right here Tuesday morning,